Technical Analysis

Nifty call: Go short on a break below 15,200

Gurumurthy K | | Updated on: Jun 20, 2022

Keep the stop-loss at 15,270 for the target of 15,020

The benchmark indices are trading flat with Nifty 50 at 15,289, down by 0.03 per cent while Sensex is at 51,387, up 0.05 per cent. The immediate resistances are at 15,400 for the Nifty and 51,650 for the Sensex

The indices will have to rise past this hurdle to see a corrective rise this week. Else, the indices will remain vulnerable to fresh fall. The price action in the coming sessions will need a close watch.

Asian markets are all trading in the red. Kospi (2,376) has been beaten down the most by 2.6 per cent, followed by Nikkei 225 (25,660) which is down 1.18 per cent. Shanghai Composite (3,314) and Hang Seng (21,058) are down 0.08 per cent each. The US markets are closed today on account of a public holiday.

Futures: The Nifty 50 June (15,285) Futures is down by 0.22 per cent. The immediate outlook is unclear. A range of 15,200-15,430 is visible on the charts. A breakout on either side of this range will determine the contract’s direction.

A break above 15,430 can take the contract up to 15,600-15,650. On the other hand, a break below 15,200 will intensify the selling pressure and drag the contract down to 15,000 and even lower.

Traders can stay on the sidelines now. Go short on a break below 15,200. Keep the stop-loss at 15,270. Move the stop-loss down to 15,160 as soon as the contract falls to 15,110. Move the stop-loss down to 15,080 as soon as the contract touches 15,040 on the downside. Book profits at 15,020.

Trading strategy: Go short on a break below 15,200. Keep the stop-loss at 15,270 for the target of 15,020. Move the stop-loss down to 15,160 as soon as the contract falls to 15,110. Move the stop-loss down to 15,080 as soon as the contract touches 15,040 on the downside.

Supports: 15,200 and 15,000.

Resistances: 15,430 and 15,600.

Published on June 20, 2022
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